If No Adjustments Are Needed for the Frances Company

question 86

Multiple Choice

If no adjustments are needed for the Frances Company

• A) the post-closing trial balance will be identical to its trial balance.
• B) the adjusted trial balance will be identical to its post-closing trial balance.
• C) the trial balance will be identical to its adjusted trial balance.
• D) the trial balance, adjusted trial balance, and post-closing trial balance will be identical.

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Definitions:

Investment Opportunity

A financial asset or an avenue to invest money with a potential financial return.

Turnover

The rate at which an employer gains and loses employees, or the total sales divided by the average inventory in a given period.

Operating Assets

Assets that are used for the day-to-day operations of a business such as cash, inventory, and machinery.

Residual Income

The amount of income that an individual or company has after subtracting all costs and expenses, including the cost of capital.